CZ says current blockchain throughput cannot make Binance a hybrid exchange
Binance CEO Changpeng ‘CZ’ Zhao so the blockchain throughput is “not there yet” to turn the firm into a hybrid exchange.
CZ responded to a community member who advised that Binance should be made a hybrid exchange. According to CZ, that is easier said than done because the stock exchange has to “ensure fund security” and other things.
He added:
“Ensure that the counterparty in the trade gets paid and that no one can cheat the system, i.e. real-time settlement. The blockchain throughput is just not there yet.”
Calling for more DEXs
Meanwhile, CZ mean the crypto industry needs more decentralized exchanges (DEX).
CZ noted that the industry needs more options away from the big DEXs operating in the space. His tweet commented that PancakeSwap (CAKE) v3 was now live on BNB Chain and Ethereum (ETH).
According to CZ, while Pancake has the most users, Uniswap (UNI) dominates the space regarding the total value of assets locked (TVL) on the protocol. He pointed out that this makes the room “too centralized.”
He noted that the industry needed more options and added that “DEXs are easier to use if you know how to keep your wallet safe.”
Meanwhile, the Binance CEO warned that DEXs can be hacked and their codes can be exploited.
DEX volume rises in 2023
The recent regulatory scrutiny fighting against centralized exchanges has seen DEX volume increase steadily through 2023.
According to DeFiLlama data, the DEX’s trading volume has risen nearly 100% since the beginning of the year to $133.32 billion at the end of March.
The increased volume saw Uniswap beat US-based crypto exchange Coinbase. Uniswap recorded $71.6 billion in trading volume for March, which is 45% higher than Coinbase’s $49.4 billion.
Meanwhile, the DEX’s trading volume has fallen by about $3 billion compared to the year-over-year measurement. As of March 2022, the DEX recorded a total volume of $136.4 billion.
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